Tuesday, November 21, 2006
Prescription Drugs
FDA Reaches Tentative Agreement With Pharmaceutical
Companies on User Fees To Review Advertisements
FDA has reached an agreement with the pharmaceutical
industry that would require companies to pay fees to the agency for
evaluating television advertisements in exchange for quicker reviews of
the ads, the Wall Street Journal reports. Under the
agreement, pharmaceutical companies would pay FDA $40,000 to $50,000 at
the beginning of each year for each television ad campaign they planned to
air. The proposed fees would go toward hiring new FDA staff to review the
ads, according to people familiar with the plan. The annual fees could
increase if FDA does not meet its target goal of $6 million annually for
the program. In addition, in the program's first year, companies will be
required to pay double to create a reserve fund. In exchange, FDA will
phase in a requirement that agency staff review drug companies' ads within
45 days. The proposal is being submitted "in tandem" with a separate
proposal that would require companies to pay new user fees to FDA to
review new-drug applications, the Journal reports. User fees
will generate about $300 million for the agency this fiscal year, and
under the tentative agreement, that amount would increase by about
one-third next year, according to those familiar with the proposal. About
$30 million of the increase would be used for safety-related activities,
including post-market surveillance of drugs' side effects. FDA in exchange
would review new-drug applications within about 2.5 months, people
familiar with the proposal said. Both proposals have to be approved by HHS and Congress. If approved,
the programs would take effect Oct. 1, 2007. "The proposed agreements
reflect the pressure on both the drug industry and the FDA to show that
they are taking steps to address critics' concerns about drug safety and
pharmaceutical promotions," the Journal reports. However, the
proposed agreements "are likely to be a first step in what will be a far
broader debate over whether, and how, to reform FDA" as Democrats take
control of Congress, according to the Journal. The Pharmaceutical Research and
Manufacturers of America and Biotechnology Industry Organization, the two trade
organizations that represent the drug industry, declined to comment. An
FDA spokesperson also declined to comment (Wilde Mathews, Wall
Street Journal, 11/21).